Amazon's Planned $1.7 Billion iRobot Acquisition Faces In-Depth EU Probe -- Update
07 July 2023 - 7:17PM
Dow Jones News
By Ian Walker
The European Commission said late Thursday that it plans an
in-depth investigation into Amazon.com's proposed $1.7 billion
acquisition of iRobot as it believes the deal could restrict
competition in the market for robot vacuum cleaners.
The European Union's executive arm also said it believes the
deal will strengthen Amazon's position as an online marketplace
provider.
It now has until Nov. 15 to make a decision on the deal.
Responding, Amazon said that it continues to work with the EC
through the process and is focused on addressing its questions and
concerns.
"iRobot, which faces intense competition from other vacuum
cleaner suppliers, offers practical and inventive products. We
believe Amazon can offer a company like iRobot the resources to
accelerate innovation and invest in critical features while
lowering prices for consumers," an Amazon spokesperson said in an
emailed statement to Dow Jones.
Last month, the U.K. Competition and Markets Authority cleared
the deal, saying that it wouldn't lead to competition concerns in
the U.K.
In September, iRobot said the U.S. Federal Trade Commission had
formally requested documents from both companies explaining the
deal's purpose and rationale. A securities filing by iRobot said
both companies would cooperate with the FTC's investigation.
After an investigation, which typically takes up to a year, the
FTC can sue to block a merger, seek concessions such as
divestitures or decline to take action, allowing a deal to
close.
"We're working cooperatively with the relevant regulators in
their review of the merger," an Amazon spokesperson said at the
time.
Amazon announced its acquisition of iRobot last August.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
July 07, 2023 05:02 ET (09:02 GMT)
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